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Investing in Florida's luxury real estate market

Canadian investors are interested in more than Florida's foreclosure market; they're also buying up luxury, oceanfront condos, according to Michael Sadov, director of operations at Pordes Residential.

Video transcript below:

Michael Sadov, Director of Operations, Pordes Residential

Michael Sadov: My name is Michael Sadov. I am the Director of Operations for Pordes Residential. Pordes Residential is a sales and marketing company that either repositions assets to go back to market or handles exclusive sales and marketing for Developers in South Florida.

We don’t believe that the foreclosures have been more than investment for the Canadians. From what we are seeing, the Canadians are really buying luxury real estate ocean front properties. And to be able to buy luxury ocean front properties in Miami, South Florida, there aren’t the foreclosures available anymore. These foreclosures have been sold over 2 years ago and really is not readily available for them. The better investment for them is the luxury ocean front real estate in Miami because the product is being bought up so quickly and supply and demand, there is no longer supply available and the demand is still high because of the markets that are driving South Florida.

The investment opportunity that the Canadians have and the yields that they could potentially yield are different. There are two types of buyers. One buyer is someone who is buying a one off residence that will rent it and maybe make 5-6% return cash on cash on their money and then what we are seeing is there are more investors in Canada that are trying to buy in bulk. They are like, they are trying to buy a building or fractured condos that they are buying, closing, renting and bringing back to market where the yields are much higher. You are talking about 15-20% return on their money. The capital gains opportunity is diminishing very quickly, at least that’s what we have found out.

So right now people who are trying to come into the market to buy, whether it’s a foreclosure or a luxury real estate or in bulk the opportunities are really really slim, unless you are there and you understand the markets and you have a company who can help you find a product. There is definitely tremendous opportunity in South Florida. And I think that will last for another 2 years prior to it completely being bought up.

We have noticed that Kenny Ranch, Miami Beach has a track with global markets and the Canadian markets. Kenny Ranch has something to offer that no one else in the world has to offer. It’s the entire holistic approach to life style and the array of amenities that are offered as a whole. Once you buy Kenny Ranch you have access to 7,000 sq.ft. park, 4 swimming pools, direct ocean front service, 40 classes per day, lectures about preventative medicine and an entire life style, ocean front life style that comes along with it.

For new investors, it's easy to get overwhelmed by facts, figures, formulas, and different investment calculations. Our goal today is to demystify the most important condo investing terms that you need to know